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Innovative Feed-In Tariff Designs that Limit Policy Costs

Sources:

United States National Renewable Energy Laboratory

E3 Analytics

Authors:

Claire Kreycik

Toby Couture

Karlynn Cory

Date:

1 July 2011

This report explores mechanisms that policymakers have implemented to limit feed-in tariff policy costs. If designed clearly and transparently, such mechanisms can align policymaker and market expectations for project deployment. Three different policy tools are evaluated: (1) caps. (2) payment level adjustment mechanisms and (3) auction-based designs. The report employs case studies to explore the strengths and weaknesses of these three cost containment tools.